Eneza Fund Bid: 102.320200 Ask: 106.031295  Hazina Fund Bid: 122.329900 Ask: 126.766736  Hisa Fund Bid: 109.595700 Ask: 113.570674 Iman Fund Bid: 97.783600 Ask: 98.771313  Hela Fund  Daily Annual Yield: 0.626% Effective Annual Yield: %



Daily Unit Trust Prices

Frequently Asked Questions

1. What is a Unit Trust?

A unit trust is a collective investment scheme, which pools all the contributions by investors with a common investment objective together in one account. The money is then used to purchase a portfolio of financial securities. Depending on the objective of the unit trust, the type of securities to be bought can comprise of: equities (shares), bonds, cash, bank deposits etc. The unit trust portfolio is managed by a professional fund manager and the cash as well as the securities are held by a custodian.

2. Why can I trust a Unit Trust?

As the name of the product already indicates, a unit trust is defined by a “trust” framework. This legally installs an independent trustee who holds the investments and monitors the actions of all involved parties. The trustee safeguards the interest of all unit holders.

Additionally, unit trusts are regulated by the Capital Markets Authority (CMA). The regulator also ensures that unit trusts are safe and checks all involved professionals and organizations. Only registered professionals are allowed to be handling unit trusts.

3. Since when are Unit Trust used?

Globally, unit trusts (or other forms of collective investments) have been used since the 1930s. In Kenya, unit trusts were introduced in December 2001 following the passing of the Collective Investment Scheme (CIS) Regulation by Parliament.  The first unit trust was licensed in 2003.

4. Why should I buy GenCap Unit Trust?

We follow a different approach as compared to the other unit trust providers in the Kenyan market:

1. We do not offer you an asset class unit trust, i.e. a portfolio that is just in equities or just in bonds. Our unit trust follows a total return approach, i.e. a strategy aimed at providing a positive rate of return to the investor without concentrating on the return of a specific asset class.

2. GenCap Unit Trust offers you products that will cater to every individual’s needs, risk appetite, age; investment horizon and life stage.

3. They are managed by our professional fund managers who aim to obtain higher returns for your investments. You do not need to monitor equity markets closely for fluctuations.

4. We will strive to give investors a fair return from their investment, no matter how big or small the investment amount might be.

5. We strongly believe in our strategy and have thus invested a total of Ksh 130 million into our unit trusts.

6. We offer you an investment opportunity with only Ksh 500 of minimum investment amount, without the need of a bank account, just transfer your excess cash via M-PESA and receive it back on your M-PESA account. There will be no extra charges, hurdles or restrictions designed to make it difficult for you to exit our unit trust if you wish to do so.

5. What are the main benefits?

Unit trust and comparable collective investment products have become very popular as they provide cost effective access to stock markets and fixed income products. Additionally, they diversify risk and allow for a professional fund manager to manage your portfolio.
What does that mean in detail?

 1The pooling of money increases your negotiation power

You are investing together with a pool of investors with similar objectives; hence, you get access to individual securities and bonds at a lower cost than         if you purchased these individually.  All the investors in the GenCap funds share proportionately in the gains and losses of the fund.

 2.  The Pooling of money increases your ability to diversify

Diversification can be neatly summed up as, “Don’t put all your eggs in one basket.” The idea is that if one security loses money, the other securities will make up for those losses, and your overall investment will not be hit hard.

 3.  The pooled money is handled by investment experts

We will use our knowledge and insight into the workings of the financial markets to give you a fair return.The unit trust portfolio will be handled by highly qualified investment managers whose day-to-day job it is to make sensible investment decisions. As a normal retail investor, there are not many people who have the same amount of time, and experience to match our investment research team.  So by investing in the GenCap Unit Trust you can gain peace of mind together with good returns.

                

6. What is a unit?

Each contribution that you remit to the Custodian is used to purchase an equivalent number of units. And each unit represents an equal fraction of the total value of the overall unit trust portfolio. This unit is very transparent as it has a daily price which is published in a national newspaper.

7. Where do I get units?

Units of the GenCap Unit Trusts can be bought from the fund administrator, i.e. Genghis Capital Limited, either direct or through an agent.
At the moment, you can hand in a purchase order via:

1. Genghis Capital Relationship Officers,
2. Genghis Capital Agents,
3. Rafiki Microfinance Relationship Officer,
4. Rafiki Agents,
5. Chase Bank Relationship Officers,
6. Chase Bank Agents.
There will be more opportunities available as our distribution network grows bigger.

 

8. Minimum Investment Amount

With the cost of living shooting up, GenCap offers you an affordable investment platform, with a minimum investment amount for as low as Ksh 500.

9. How many units do I receive when i invest in GenCap?

When you purchase a GenCap Unit Trust, the number of units you will receive is calculated by dividing the investment amount by the offer price at the time of purchase.
For example, when you purchase at a price of 105 and you invest Kes 5,000, you will receive 47.6190 units.This number of units will be shown in your monthly statement. The value of these units will then change in accordance with the price of the unit trust. The price of the unit trust is dependent on the development of the securities (sometimes called underlying assets) that are bought for the unit trust by the fund manager. So if you buy at another point of time, the price may be different, let’s say 102, you will then reveive 49.0196 units.

10. What I should know before investing in a unit trust?

To align your interest and expectations with the objectives of the unit trust, you need to consider and answer the following questions and discuss them with your financial advisor:

1. What is my investment objective?
 2. What is my attitude towards risk?
 3. Am I prepared to lose money in order to gain more profit?
 4.What is my investment horizon?
 5.Do I need the money in a short while urgently?

You have to know that the value of the unit trust will fluctuate in accordance with the underlying investments and that there is no guarantee of performance or of the invested capital.

11. When is a good time to invest in a unit trust?

Generally, it is a very good idea to invest regularly to take advantage of “cost averaging”. Capital market products such as shares and unit trust fluctuate in price, sometimes strongly. And history shows that it is very difficult for any investor to predict market conditions i.e. to buy units at the lowest price and sell them at the highest price. Therefore, you are more successful if you invest smaller amounts regularly over a longer time period and buy units every month or every two months.

12. Why are so many different service providers involved in the Unit Trust?

There are different roles in a unit trust to make it a very secure investment.

1. The Trustee will monitor all involved parties and check all transactions done by the fund manager and the custodian.
2.The custodian will safeguard the assets and the securities of the unit trust in a separate account which is not accessible to anyone other than the fund manager.
3. The fund manager will invest the portfolio across various asset classes and will use its market knowledge and expertise to give you superior rate of return.
4.The fund administrator will manage all the transactions for the clients and organize communications, purchases and sales of units.
5. The auditor will check and audit the unit trust operations on an annual basis to enhance your security.

13. Aren’t those different service provider very costly ?

All those service providers will earn a fee for their services to the fund, but as this structure is a regulatory obligation, you will find no unit trust without one of these. On the other hand, they ensure the security of your investment.

14. How quickly is my money available if I decide to sell?

The GenCap unit trust provides you with easy access to your money. Normally, your money should reach your account within three working days after you have placed a valid sales order. You can sell all or part of your investment at any time. However, we recommend that investments in any fund except the money market fund should be viewed as medium to longer term (3 – 5 years), as the nature of the main investment assets within the funds follows a longer-term market cycle.

15. What do I have to know about taxation of the unit trust?

Unit trusts are a tax-efficient investment. A unit trust fund does not pay tax on its income, either from dividends or interest.
In addition, unit trusts do not pay tax on capital gains.
However, when you sell the units, your personal taxation kicks in and the profits from the unit trust will be taxed at that moment. So you can accumulate profits tax free (which makes quite a difference due to the compound interest effect), but once you want to disinvest you are taxed at that point in time.

16. Where can I get all the relevant information about the GenCap Unit Trusts?

Each unit trust of the GenCap family is constituted by a Trust Deed, which is the legal document establishing the trust. Additionally, there is an Information Memorandum which is the foundation on which the unit trust is sold to you. A copy of each document can be availed to you by email if you wish.
You can also go to our unit trust web site (www.GenCapUnitTrust.com) and you will find all available information on the unit trust on this site.
All fees and charges involved in the GenCap Unit trust are transparent and are published in the Information Memorandum. Current Information on the investment performance is provided in a monthly fund fact sheet that is sent to each client via email by the fund administrator.

17. What rate of return do the GenCap Unit Trusts offer?

The rate of return rendered by a unit trust fund depends on the following factors:

1. Returns from the financial markets
2. Type of assets within the unit trust portfolio
3. Management skills of fund manager

The value of shares, treasury bonds, corporate bonds and other asset classes are determined by financial markets and can rise or fall over time. Historical performance does not predetermine future performance.

18. What risks do I encounter when investing in the GenCap Unit Trust?

In general, the level of investment return is related to the level of risk incurred by any investment, i.e. the higher the potential risk, the greater the potential return.
Grouped according to asset classes, this leads to the following risk-return ranking:

1. Equity-based unit trusts provide the highest potential return, but are also associated with the highest risk.
2. Bond or fixed income instruments - Less risky, but also with lower potential returns
3. The most secure unit trust funds are generally the money market funds as they invest in short-term securities.

19. How can I monitor returns in a GenCap Unit Trust Fund?

The GenCap Unit Trust is obliged to publish its prices every day in at least two national newspapers. The market value of your investment depends on the current price of the unit at a particular period of time. The number of units you have needs to be multiplied with the current price which then gives you the market value of your investment.
For example, you might have purchased 1,000 units at a price of Kshs 105. If the price appreciates after a week to Kshs 110, this means that the market value of your investment has increased from Ksh 1000 to Ksh 1048.

20. Do Unit Trusts re-invest dividends and capital gains?

Yes, the fund manager of the Unit Trust often tries to maximize returns by reinvesting returns. But there is also an option that returns are distributed to investors semi-annually.

21. Do I have to invest monthly in the GenCapUnit Trust?

This is not necessarily the case. For the GenCapUnit Trusts, contributions are flexible in that you can contribute any amount at any frequency. However, the earlier in life you start investing in the GenCap Unit Trust and the more regular you are able to do it, the better.

22. When is the best time to buy units of a GenCap Unit Trust?

There is no particular best time to buy units of a Unit Trust when one is either saving or investing for the long-term. We, however, recommend that you invest frequently to have the advantage of average cost-pricing.

23. Do I have to indicate in advance how long I intend to be a member of the GenCapUnit Trust?

No. As mentioned in our Terms and Conditions, you do not have to state anywhere how long you will stay invested in the GenCap Unit Trust. However, we recommend minimum investment periods for each fund as the fund strategy and the initial fee that you are paying makes a shorter investment uneconomical.

24. What should I consider before I invest?

Before investing, it is useful to follow the following steps to ensure success:

1. Identify your goal for investing
This could be meeting future education expenses, retirement, payment of a deposit for a house or a savings plans
2. Establish a time-frame for your investments. Be realistic about the time commitment for your investment. It is recommended that investments in unit trusts be medium to long-term investments (except for money market investments).
3. Identify the level of risk
It is important to understand the level of risk associated with different types of investments
4. Select a unit trust fund which best meets your requirements as stated above.

25. What avenues are the funds you receive from clients invested into?

  • Local Stock Market - Listed shares
  • Treasury Bonds
  • Commercial Papers
  • Treasury Bills
  • Offshore Investments
  • Fixed Deposits
  • Infrastructure Bonds
  • Corporate Bonds
  • International Equities  etc.
 

 

end faq

Associates

Chase Bank Ltd
www.chasebank.co.ke

Genghis Capital Ltd
www.genghis-capital.com

Winton Investment Services Ltd
www.winton-investments.com